American Express Says No Way To No-show Diners

OTHER NEWS TO NOTE - SOUTH

February 22, 1996

ARLINGTON, VA. — American Express is testing a punishing new program: charging restaurant customers a penalty of up to $25 for not canceling reservations secured with the credit card, USA Today reported Wednesday. The company launched a test program last summer in 20 cities, including New York and Houston, and plans to go nationwide in May. To guarantee a reservation, customers must provide their credit card number. If plans change, the person must call to cancel - or pay $10 to $25 per person. Since the test program was launched, only seven out of thousands of reservations resulted in a fee, American Express said.